Packaged current accounts will almost certainly charge a monthly fee, although some may waive this fee subject to certain conditions being met, such as a minimum amount being paid into the account every month.

The fee may be around the £10-a-month mark, although both the fees and the benefits packages will vary widely.

Here are some of the most common benefits included in packaged accounts:

Interest-free overdrafts or buffers

Travel insurance

Mobile phone insurance

Breakdown cover

Card protection

Extended warranties

Other benefits may include preferential rates on other products such as foreign currency, savings accounts and mortgages, music downloads, DVD rentals, cinema tickets and/or discount cards.

Check the small print on packaged accounts

Packaged accounts have come in for a fair amount of criticism from both the financial regulator and consumer groups.

Did you know...?

Cons of packaged accounts

You could pay more for the combined benefits than if you bought them separately

You may be ineligible for some of the benefits, due to your age, job or another reason

You may not use some of the benefits, which potentially means you could have saved money buying the ones you will use separately

You may already have some of the benefits, for example through your job

Doubling up on cover can complicate claims and lead to higher renewal premiums on multiple products

Keep on top of packaged accounts

If you do go for a packaged account, make sure you read the small print carefully and, if you need to, activate any insurance policies. Otherwise, you could discover you're not covered after all.

One of the advantages of the midata initiative is that customers will be able to obtain a clear idea of how much they may gain from the services included on packaged products

It's also important to review your arrangements regularly to make sure you're using the benefits and that you're still eligible for them.

If and when you take out another insurance policy or financial product, think about whether you're doubling up on cover.

If you do this and subsequently have to make a claim, you'll find that many policies have contribution clauses which state that, if cover is provided by another insurance product and a claim is made, each respective insurer would only pay their share of the claim.

This could complicate the claims procedure and potentially lead to more expensive premiums on renewal as you may be deemed to have made a claim on more than one policy.

Midata and packaged accounts

One of the advantages of the midata initiative is that customers are able to obtain a clear idea of how much they may gain from the services included on packaged products, and of available accounts that may be more suitable to their needs.

Midata allows a consumer instant electronic access to up to 12 months' worth of his or her current account transactions, including all fees charged and rewards gained.

This data can be instantly, electronically fed into Gocompare.com's comparison service, which will then show the different current account options available, with customers seeing the actual pounds and pence cost or benefit they'd get by switching to a particular one.

Consider your credit history

Some providers may set high credit criteria before accepting customers for a packaged account, and it's possible that a rejected application could have a negative impact on credit scores held on you.

See also:

These customers have a right to reclaim the fees they paid, plus interest. Typical mis-selling cases include:

You were told you needed the fee-paying account to secure a deal on another product such as a mortgage, overdraft or personal loan

Too old for packaged insurance – for example, someone was sold an account with packaged travel insurance when they were above the upper age limit applied to the product

You weren’t told of issues that could exclude you from cover, such as a medical condition that would invalidate travel insurance

You were pushed into it by a salesperson and the terms weren’t fully explained

The price went up and you weren’t told

You were forced to keep a packaged account when you asked to cancel it

You weren’t told you needed to register your phone or car to get the packaged insurance

You were told it would improve your credit score

In such cases you may be eligible to complain and claim, so:

Step one: Complain to your bank

Ask your bank for contact details for its complaints department, then get in touch and tell them why you think you haven't been treated fairly.

You might find it easier to explain this clearly in writing - either by email or in a letter - rather than over the phone. An email will mean you have a record of the complaint - if you send a letter, keep your own copy of it.

Collect any documents and evidence you have ready to send if the bank asks for them, and ask for written confirmation of receipt of your complaint.

Step two: Take it to the Financial Ombudsman

If your bank rejects your complaint, you can escalate things by taking the matter to the Financial Ombudsman.†

The ombudsman is a free service which will decide whether the account was mis-sold based on the facts it’s presented with.

If it decides the account was mis-sold, it’ll tell your bank to refund you.

[1]Gocompare.com introduces customers to Lovemoney.com Financial Services Limited, which is authorised and regulated by the Financial Conduct Authority. Gocompare.com's relationship with Lovemoney.com Financial Services Limited is limited to that of a business partnership, no common ownership or control rights exist between us. Please note, we cannot be held responsible for the content of external websites and by using the links stated to access these separate websites you will be subject to the terms of use applying to those sites

†Please note, we cannot be held responsible for the content of external websites and by using the links stated to access these separate websites you will be subject to the terms of use applying to those sites